Netflix (NFLX) is heading into Q1 earnings with a fresh price target bump from Deutsche Bank, even as the firm maintains a cautious stance on the stock’s valuation. Analyst Bryan Kraft raised his price target to $100 from $98 while reiterating a Hold rating, citing improved operating income and EPS expectations.
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Strong Rally Meets Tough Valuation as Netflix Heads into Earnings
Kraft noted that Netflix shares have rallied roughly 25% since late February, reflecting investor relief after the company walked away from its bid for Warner Bros. Discovery (WBD). He noted that the move spared NFLX from taking on heavy debt, facing regulatory hurdles, and managing a complex integration, while still securing a $2.8 billion termination fee.
However, the analyst said the trade‑off is clear. Netflix will not gain access to Warner’s IP library, which means its long‑term growth engine remains tied to organic subscriber additions, price increases, and expanding ad revenue.
Kraft also flagged the return of the “engagement debate,” as investors weigh how far pricing and advertising can go if users are not watching more over time.
While he still views Netflix as the streaming leader, he argues the stock’s valuation already reflects much of its long‑term potential. Also, he expects the company’s double‑digit revenue growth to gradually cool to the high‑single‑digit range after 2027, making the current multiple harder to stretch.
For now, Kraft sees Netflix as a strong operator heading into earnings, just not a clear bargain at current levels.
NFLX to Report Q1 Results on April 16
Netflix is set to report earnings on Thursday, April 16. Currently, analysts expect NFLX to post revenue of $12.18 billion in Q1, up from $10.38 billion in the year-ago quarter. Further, the company is expected to report earnings of $0.79 per share, compared with earnings of $0.66 in the prior-year quarter.
Investors will likely watch for updates on engagement trends, international strength, and how management frames its path for revenue and margin growth through 2026.
Is NFLX a Buy, Sell, or Hold?
Turning to Wall Street, analysts have a Strong Buy consensus rating on NFLX stock based on 30 Buys and 10 Holds assigned in the last three months. Further, the average Netflix price target of $115.09 per share implies 11.56% upside potential.
